Advisors looking to protect client portfolios against the ravages of inflation should consider strategies beyond Treasury Inflation Protection Securities (TIPS). For example, some model portfolios offer a unique blend of equity, fixed income and alternative assets that can bolster inflation protection.
WisdomTree offers a series of model portfolios with endowment-style strategies that can help advisors deploy alternative assets while mitigating risk.
“Endowment is a reference to including non-traditional assets in addition to stocks and bonds, similar to a strategy that many endowments employ. The strategies may use both WisdomTree and non-WisdomTree ETFs. It typically includes U.S. and international equity and fixed income funds, along with different types of alternative strategies,” according to WisdomTree.
There are some indications this model portfolio is a relevant consideration today.
“While the overall economic environment probably points to inflation remaining low, there are still pockets of inflation here and there. Supply-chain disruptions and plant closures